Actor Shah Rukh Khan has won a major victory in a controversy with the Income Tax authorities, with the Income Tax Appellate Tribunal or ITAT a decision in its favor.
The controversy belonged to his film RA One’s tax, which was released in 2011.
The IT department disputed Mr. Khan’s declared income of Rs 83.42 crore for 2011-2012, dismissing its claims for foreign tax credit for taxes paid in the UK.
The department calculated its tax as Rs 84.17 crore, after more than four years.
ITAT ruled that the re -evaluation of the case by the IT department was not legally appropriate.
Itat stated that the Evaluation Officer “failed to showcase any freshly tangible material, which makes a revaluation beyond a four -year legal period.”
The issue was already investigated during the preliminary investigation, the re -evaluation proceedings were bad in the law on more than one count, the Itat said.
Under Mr. Khan’s agreement with red chilli entertainment, 70 percent of the film’s shooting was scheduled to be held in Britain and therefore a similar percentage of his income would be under Britain’s taxes.
The IT department said that such a system led to revenue loss to India and the authorities denied their claims for foreign tax credit.
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